In a C corporation, you are considered a minority shareholder if you own less than 50 percent of the company shares. However, whether you own 1 or 49 percent of the company, you have basic rights as a minority shareholder to share in the profits as well as monitor the performance of your corporation. If any of your rights are violated by the corporation, you also have the right to take legal action against the company.

Inspection of Financial Records

You have the basic right to access the books of your corporation. All financial information, tax records and transaction histories can be viewed by you. There are two ways to access records. If you’re a shareholder in a public corporation, your company has to submit financial information to the Securities and Exchange Commission annually for the public to see. You can also access records by filing a written request to see them at the corporate office. Your request must state the reasons you want to view financial records; these reasons must be relevant to being a shareholder. While you’re reviewing the documents, you can make copies and take them with you. If you’re a minority shareholder in a private corporation, this is the only way to access such records; private corporations don’t have to submit information to the SEC.

A Vote on Company Matters

You have the basic right as a minority shareholder to take part in elections of corporate directors and meetings to vote on company decisions. Each year your corporation is required to have an annual meeting with shareholders, and special elections may take place during these occasions. You can make your voice heard as a minority shareholder by attending these meetings and casting your vote. However, if you cannot attend these meetings, you have other ways to vote. You can vote by proxy, which means having someone at the meeting cast your vote. You may also cast your vote via email, Internet, fax, phone or mail.

The Right to Sell Shares

You have the right to sell the shares that you own whenever you want for any reason. If you’re a minority shareholder in a public corporation, you can sell your shares on an exchange where other stocks are bought and sold, such as the New York Stock Exchange. If you’re in a private corporation, you can’t sell your shares publicly, but do have the right to sell your shares if you can buy a buyer.

The Right to Dividends

If your corporation is sharing profits via dividends, you have the right to your share. Your company cannot distribute profits to a select group of shareholders; everyone must get a share if the company is distributing dividends. However, your corporation makes the decision whether to distribute dividends and to control how much you receive if it does decide to issue dividends. The amount of the dividend can vary based largely on the profitability of your corporation for the year.